Ellevest exits robo-advice business, transfers assets to Betterment

Ellevest exits robo-advice business, transfers assets to Betterment
The move marks a pivotal strategic shift for the women-focused investment advisory firm and top-growing RIA.
FEB 26, 2025

Ellevest, the wealth management firm focused on serving women, is exiting the automated investing space and transferring its robo-advisory accounts to Betterment.

The move, announced by both companies, marks a shift in Ellevest’s strategy as it concentrates on financial planning and wealth management for high and ultra-high-net-worth clients.

"As we focus on our growing wealth management and financial planning business, Betterment was the natural home for our digital-first clients," said Sylvia Kwan, Ellevest CEO and CIO, said in a statement on Wednesday. "On top of automated investing, Betterment offers features that many of our digital clients have expressed interest in, including joint accounts and other cash account options."

Under the terms of the agreement, Betterment will acquire only Ellevest’s automated investing accounts and assets under management. No technology, employees, or operations are included in the transaction. The transition is expected to take place on or around April 17, 2025, and clients will have the option to opt out of the transfer.

Ellevest was founded in 2014 by Sallie Krawcheck, a former Merrill Lynch boss and brokerage executive, with a stated mission of getting more money into the hands of women. The firm’s investment approach integrates financial planning with values-based investing, particularly for women and families.

In 2022, Ellevest got additional fuel for that cause with a $53 million Series B financing round co-led by Canadian banking giant BMO and Contour Venture Partners, along with several other women-led investors. While that was a bloody year for the markets, Ellevest distinguished itself as one of the best-performing robo-advisors during the period, according to 2023 research by Condor Capital Wealth Management.

Krawcheck grabbed headlines in December with the decision to step down from the firm for health reasons. She left Kwan and Connie Hsiung, the firm's chief operating officer and CFO, to head up Ellevest as co-CEOs.

On Tuesday, $37 billion RIA giant Beacon Pointe welcomed an Ellevest alum, advisor Allison Kvikstad, as its latest partner and managing director.

Going forward, Ellevest said it will focus exclusively on clients with at least $500,000 in investable assets. 

Betterment, which manages over $55 billion in assets and serves more than 900,000 customers across the US, has expanded through acquisitions in recent years, including the US advisory accounts of Wealthsimple, a Canadian robo-advice provider, in 2021 and Goldman Sachs’ Marcus Invest accounts in 2024. The company sees the Ellevest acquisition as a continuation of that growth.

"This acquisition further cements our leadership in the digital investing space," said Sarah Levy, Betterment CEO. "We look forward to welcoming Ellevest’s clients to Betterment and to continuing to support them on their wealth-building journeys."

Ellevest clients who transition to Betterment will have access to automated investing, diversified portfolios, and tax-efficient tools, as well as additional account options and human advisors.

Latest News

William Blair taps former Raymond James executive to lead investment management business
William Blair taps former Raymond James executive to lead investment management business

Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.

Fintech bytes: Pontera and Opto Investments expand RIA reach with new tech partnerships
Fintech bytes: Pontera and Opto Investments expand RIA reach with new tech partnerships

Snowden Lane taps Pontera for held-away retirement account management, while Opto Investments enhances an Indiana-based independent RIA's private markets offering.

Credent Wealth Management debuts in Detroit with TFG Advisors deal
Credent Wealth Management debuts in Detroit with TFG Advisors deal

The $420 million RIA in Auburn Hills and Ann Arbor gives Credent its second and third Michigan locations while pushing it closer to $4 billion in AUM.

Investor anxiety hits six-year high amid market turmoil, Allianz finds
Investor anxiety hits six-year high amid market turmoil, Allianz finds

New survey reveals heightened investor concern over market volatility, retirement readiness, and the impact of tariffs on living costs.

Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints
Stifel star broker, Chuck Roberts, leaves firm under cloud of investor complaints

Stifel – so far - is on the hook for more than $166 million in damages, legal fees and settlements in investor complaints involving Roberts, a 35-year industry veteran.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.